MTS Systems has received an additional notice from Nasdaq that the company is not in compliance with Nasdaq listing rules for continued listing, as a result of its inability to timely file its Quarterly Report on Form 10-Q for the period ended December 31, 2016 and because it remains delinquent in filing its Annual Report on Form 10-K for the fiscal year ended October 1, 2016. MTS can, and intends to, regain compliance with Nasdaq's filing requirements for continued listing. MTS was unable to timely file its Reports because of an internal investigation relating to apparent violations by certain employees in its China operations of the company's code of conduct. On January 27, MTS submitted its plan to regain compliance with Nasdaq's filing requirements for continued listing, and such plan is currently under review by Nasdaq. The notice has no immediate effect on the listing of the MTS's common stock on Nasdaq.